New Accounting Standards Upcoming Effective Dates for Private Company
In this publication, we’ve summarized the new standards that take effect in annual 2021 financial statements for nonpublic entities. Those effective dates reflect the deferral of certain major standards provided in ASU 2019-10 and ASU 2020-05.
In the next filing season, calendar year-end nonpublic entities will prepare their annual 2021 financial statements reflecting standards that took effect in 2021. The FASB has deferred the effective date of the new leases standard until 2022 and the credit losses standard until 2023 for nonpublic entities.
Early adoption is generally permitted for all of the standards summarized herein, but each ASU has specific transition guidance and early adoption may have been limited to certain periods or circumstances.
Accounting Standards Updates Effective for Calendar-year Nonpublic Entities as of January 1, 2021
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Pronouncement |
Effective Date |
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ASC 350, Intangibles - Goodwill and Other |
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ASU 2021-03, Accounting Alternative for Evaluating Triggering Events |
Effective prospectively for annual periods beginning after December 15, 2019. |
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ASC 350-40, Intangibles - Goodwill and Other - Internal-Use Software |
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ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |
Effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. |
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ASC 606, Revenue from Contracts with Customers ASC 808, Collaborative Arrangements |
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ASU 2018-18, Clarifying the Interaction between Topic 808 and Topic 606 |
Effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. |
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ASC 715-20, Compensation - Retirement Benefits - Defined Benefit Plans - General |
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ASU 2018-14, Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans |
Effective for fiscal years ending after December 15, 2021. |
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ASC 810, Consolidation |
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ASU 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities |
Effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. |
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ASC 815, Derivatives and Hedging |
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ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities |
Effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The original effective date of ASU 2017-12 was deferred by ASU 2019-10. |
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ASU 2018-16, Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting |
The amendments are required to be adopted concurrently with the amendments in ASU 2017-12. |
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ASU 2019-04, Codification Improvements |
The amendments that affect ASC 815 are required to be adopted concurrently with the amendments in ASU 2017-12. |
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ASC 848, Reference Rate Reform |
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ASU 2021-01, Scope |
Effective upon issuance on January 7, 2021. |
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ASC 920-350, Entertainment - Broadcasters - Intangibles - Goodwill and Other ASC 926-20, Entertainment - Films - Other Assets - Film Costs |
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ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials |
Effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. |
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ASC 952-606, Franchisors - Revenue from Contracts with Customers |
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ASU 2021-02, Practical Expedient |
Effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. |
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